Q&A
My organization has General Liability coverage, so why is Intellectual Property coverage necessary?
Many executives assume that their companies’ General Liability insurance covers intellectual property (IP) disputes. In truth, General Liability policies do not cover intellectual property.
One reason for the misconception is that some general liability policies do provide Advertising Injury coverage under “Coverage B.”
This coverage, however, only applies when a statement made in advertising activities causes bodily injury and or property damage from an occurrence if the claim is not subject to exclusion. Coverage B applies only to claims that result from the specific offenses included in the definition of personal and advertising injury. When a claim does not arise from one of these offenses, it is not covered.
Directors & Officers coverage and Shareholders Insurance are also standard commercial coverages, but they do not cover the legal losses from intellectual property lawsuits.
Ironically, organizations often purchase Shareholders Insurance without realizing that intellectual property claims are more common than shareholder actions.
What if I cannot afford IP coverage?
Since organizations really cannot afford to go without it, Dumont Insurance Brokers Corp. offers financing options.
My attorneys say that if I get professional liability coverage, I will not be able to use their services. Is that true?
Nothing could be further from the truth. The policyholder directs the litigation process, including which lawyers to retain. The insurance company might offer other counsel that, through experience, it considers more effective, but the policyholder is not required to hire them.
How are claims handled?
The organization notifies the insurance company or a Dumont agent when the infringement suit becomes known. The insurer or agent will ask questions to investigate and identify the relevant facts.
The organization also files a claim, providing the insurance company with a favorable infringement opinion from independent counsel provided by the insurer. The insurance company then provides a decision in writing concerning authorization of the lawsuit. Authorized expenses are then reimbursed by the insurance company.
Why purchase coverage from Dumont Insurance Brokers Corp.?
Dumont uniquely offers services that identify, measure, prioritize and mitigate risk to improve the risk profile of its customers.
Through its litigation management programs, Dumont helps clients determine approaches, ideas and tactics to engage a successful ruling. Accordingly, Dumont’s program can save 20 percent of overall expenses. This includes customizing and requiring agreement to litigation management and billing guidelines for selected firms prior to retention.
Client benefits include:
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choosing quality counsel; |
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negotiating hourly rates for counsel and other necessary services to build an optimal case; |
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monitoring invoices to comply with billing criteria; |
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acquiring regular verbal and written updates and explanations of litigation strategy changes; |
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keeping the litigating counsel focused on the customer’s case; and, |
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supervising legal and/or other proceedings at the client’s request. |
While this service is part of having intellectual property insurance, we also offer it to organizations for an additional fee. These services may also be retained for organizations that do not have coverage through Dumont.
Does Dumont specialize in any particular industries?
Dumont offers coverage for all industries and specializes in meeting the needs of technology and life sciences clients.
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